The Road Tax

I’m sure we all have been on the highways throughout the country, and seen these heavy and/or “double-decker” trucks (blocking our viewpoint) and there is one thing that one may not realize (except maybe the owner of these trucks) is that, yes these heavy trucks are taxed as well by the federal government.

What exits in the federal tax code is called the “Heavy Highway Vehicle Use Tax”, which was imposed when the federal Highway Trust fund (which its funding is current being debated in Congress this week) was created to help finance the federal Interstate Highway System, which was spirited by President Dwight David Eisenhower back in 1956.

This federal excise tax is imposed on driven vehicles that are at least 55,000 pounds.  The tax amount is ranged starting at $100, and increases $22 for each 1,000 (or fraction thereof), to a maximum of $550, once the driven vehicle is over 75,000 pounds.  According to the federal tax code, this tax is imposed on “ . . . the person in whose name the highway motor vehicle is, or is required to be, registered under the law of [a] State”, which means that whoever registers the vehicle under particular name (which could be a business name, a corporate name, a driver’s name, or even an individual owner’s name) is the responsible party to pay this specialized federal excise tax, and of course there is a form, called IRS Form 2290.  Also, this “Heavy Highway Vehicle Use Tax” is an annual tax, and the tax period ends on June 30 of each year, and the tax is due by the last day of the month following the first month a vehicle is used.  If a vehicle was first used during the month of December, then the tax is due on the following January.

So, if you are a responsible person (or party) that owns and/or drivers a trucking vehicle that weigh more than 55,000 pounds, please let us know at info@kayatax.com, and we would be more than happy to go over this federal “Heavy Highway Vehicle Use Tax” and tell what is the tax amount and when it is due.